Unpaid Internship and CPT
F-1 students engaged in paid internships must have CPT or another form of employment authorization. However, even for unpaid internships, we strongly recommend students to apply for CPT. By obtaining CPT authorization even for unpaid training or internship activities, a student:
is able to demonstrate to US immigration authorities that the activities were reviewed and approved by the student's academic department and the International Programs department, and certified as integral and appropriate to their academic program
is given the flexibility to accept compensation or payment or other forms of material benefits that would not otherwise be approvable or allowed without CPT authorization
will have reassurance that any activities carried out that could be considered employment under US labor definitions were authorized
**Note that in many cases internship providers will also require students to obtain CPT approval as a condition of participating in the unpaid internship, to demonstrate that the interns are engaged in academic activities rather than employment. **
Unpaid Internships Defined: It is also important to realize that the US Department of Labor has set out several criteria that identify when an internship may be legitimately unpaid. Emloyers who fail to meet the criteria for unpaid internships may be expected to offer paid emplooyment instead, and the interns may be expected to have appropriate authorization. Becasue an unpaid internship may actually be emplooyment under Department of Labor guidelines, CPT authorization is strongly recommended for the purposes as well. The main criteria that determine whether an internship may be unpaid include the following factors:
The internship, even though it includes actual operations on the facilities of the employer, is similar to training which would be given in an educational environment;
The internship experience is for the benefit of the intern;
The intern does not displace regular employees, but works under close supervision of existing staff;
The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
The intern is not necessarily entitled to a job at the conclusion of the internship; and
The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship
If all of the criteria are satisfied then the internship may be considered a legitimate unpaid internship. However, in the event of any uncertainty, then obtaining authorization is recommended.
If you are planning to include an unpaid internship experience as a part of your employment history (i.e., on your resume or CV), then we strongly recommend obtaining a letter from your internship provider that verifies the dates and location of your internship, that your internship was unpaid, and a brief description of the duties and objectives associated with the internship. This information may be useful in the event that you are ever asked to document that the activities were appropriately structured as an unpaid internship.